October 14th, 2010 (Vancouver, BC) – Freegold Ventures Limited (TSX: FVL Frankfurt: FR4N) (“Freegold”) is seeking shareholder approval for the warrants to be issued in conjunction with its non-brokered private placement of 8,975,758 units (“Units”), of which at 7,575,758 Units were priced at Cdn$0.33 per Unit, and 1,400,000 Units were priced @ $0.35 per Unit, as announced in Freegold’s news release of October 1st, 2010. Each Unit consists of one common share (a “Share”) and one common share purchase warrant (a ‘Warrant”). Each Warrant will entitle the holder to acquire an additional Share at a price of $0.40 for a period of one year from the date of closing and at a price of $0.50 between one year and two years from closing. Pursuant to the requirements of the Toronto Stock Exchange, the issuance of the Warrants and the resulting 8,975,758 common shares issuable on exercise of the Warrants is subject to shareholder approval as the aggregate number of common shares being made issuable under the private placement, is more than the 25% of the current issued and outstanding number of shares of Freegold and the issuance of the Warrants deems the Units to have been issued at a discount to market price of the common shares. Under the private placement, insiders purchased 137,142 Units which, assuming exercise of the Warrants results in a total of 274,284 shares being issued to such insiders, representing 1.6% of the outstanding shares of the Company.
Freegold intends to seek shareholder approval of the issuance of the Warrants and the resulting common shares underlying the Warrants by obtaining written consent of a majority of disinterested shareholders as provided by Section 604 (d) of the TSX Company Manual. It is management’s and the board’s firm belief that approval of the transaction is vital for the Company’s forward progress and strongly recommend that shareholders who are requested to do so sign the required form of consent.
About Freegold Ventures Limited
Freegold is a TSX listed company focused on the exploration of gold projects in Alaska. In addition to the Golden Summit Gold Project, the company holds a 100% in lease interest in the Rob Gold Project near the Pogo Gold Mine in the Goodpaster Mining District of Alaska and has an exploration agreement with option to lease the Vinasale Gold project in central Alaska.
For further information:
Kristina Walcott-President and CEO
This press release contains forward-looking information. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, anticipated future financing. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include uncertainties relating to the availability and timing of such financing and other factors. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.